The Living Wage Technical Group (LWTG) has recommended an increase in Living Wage to €12.90 an hour in Ireland. It means an increase of 60 cents from the current level and the group points out the hike in rent, transport and energy costs as the cause for this recommendation.
A Living Wage is intended to be a benchmark hourly rate that should provide employees with sufficient income to achieve an agreed acceptable minimum standard of living.Though it is not a legal deal, Living Wage is a commitment of employers to their employees. Also it is not connected to the national minimum wage which stands at €10.20 and is legally enforceable.
“Having an income below this standard of living means doing without goods and services which are essential for taking part in the norms of everyday life in Ireland.” said Robert Thornton, VPSJ Senior Research and Policy Officer and a member of the LWTG.
According to LWTG, one-in-five full-time workers in the country earn less than the current Living Wage. The report is documented by the researchers and experts from St Vincent de Paul, the Nevin Economic Research Institute, SIPTU, Social Justice Ireland, TASC, Unite and is conducted by the Vincentian Partnership for Social Justice (VPSJ).
The LWTG said rents account for 3.9 percentage points of the 4.9% increase. In Dublin, housing costs now account for 64.7% of a ‘Living Wage’ net salary, based on the 2021/22 rate.
TheProgramme for Government committed to progress to a living wage over the lifetime of the Government.
In January, the Tánaiste asked the Low Pay Commission to examine the issue and make recommendations to Government on how best to achieve this commitment.